New Build Flats & Houses - Valuations

  • The maximum loan to value on New Build Flats is 75%
  • The maximum loan to value on New Build Houses is 90%.

Please ensure you refer to the current product rates as product LTV restrictions apply per application type. Products may not always be available up to maximum LTV lending limits above.

In some areas of the country, heavy investment and development has led to a large supply of new properties. This, combined with a slowing rise in property prices, more buy to let activity and developers' incentives has led to difficulties in assessing the true value of these properties as new homes for owner occupation. As a result, Nationwide values all new properties (flats, houses and maisonettes) as if they have already been occupied and are being resold for the first time. Any builders' incentives or new build premiums are excluded.

This reflects Nationwide's desire to protect both the lender and the borrower from the potential risks in this market. It will help protect borrowers of new build properties from the risk of negative equity by ensuring that the valuation given is a true representation of a property's resale value. Valuers are instructed to discount the 'new build premium' and ignore all builders' incentives and cashbacks when valuing new build properties, resulting in all new build properties being valued on a re-sale basis. The 'resale' value is based on comparable evidence of properties that have been occupied which may result in some new build properties being valued at below the purchase price.

Where a new build property is valued at below the purchase price, a copy of the report can be provided to our customer, who will then have the option of a reduced advance or renegotiation of the purchase price. The valuation fee is non-refundable once a valuation has been carried out.

The definition of a 'new flat or house' includes maisonettes and means one that has not been occupied within two years of construction, conversion or refurbishment. This includes properties being bought off plan.